Liabilities

In accounting terms, the assets of a company show what it has, while the resources show what these assets are available from.

The means of production, concessions, licences and similar rights and patents in a company, which are necessary for the company's operation and income generation, are collectively referred to as assets. Liabilities represent the resources available in the company from which we can to finance the assets, that is, in essence, some form of appearance of the money present in the company. 

The first and perhaps the most important feature of the money available to the company is its source, regardless of the form in which it is available (cash in the cash register, cash in the company bank account, or an amount invested in securities for a longer period of time). So the first question is, did the owners of the company provide the money for the business in some form or did it come from a source independent of the company?

In the first case, we are talking about own resources (such as the share capital or shareholder loans). In the second case, from an external resource, the most typical appearance of which is a bank credit. 

Another peculiarity is that the resource can be negative. This can happen if the business owes someone: suppliers, employees or any other partner. 

A company's resources can be short-term or long-term. Resources that expire within a year (i.e. must be repaid within this period) are called short-term. Everything is of particular importance when planning a company's cash-flow: it is a bad idea if, for example, a company implements a long-term investment from short-term funds. 

Money has a wonderful property called present value. This means that money is worth more today than tomorrow, because it can be invested today, and thus more can be made of it tomorrow. When planning our company's financing, it is therefore the right approach if we always know about our resources, how much they cost and in what time frame, for what we intend to use them for. So we have to consciously plan with the money, regardless of whether it comes from our own or foreign resources. 

Even with reliable operation and strong cash flow, it is conceivable that it is worth taking out a loan at low interest rates. A good example of this could be that such a loan helps even out the fluctuations of the company's cash flow even in the short term or, in the case of an investment, the costs of initial financing can be reduced with a leasing arrangement. Therefore, fundraising is by no means a characteristic of weak companies, on the contrary: it can help well-functioning companies in their growth and the realization of their business goals. We have to find this, the right balance of external and internal resources in our own company.